Glossary: balance of trade
DEFINITION:
A record of a country’s trade in goods with the rest of the world. The balance of trade differs from the balance of payments (q.v.) because the latter includes transactions for services and the former does not. When the exports of merchandise exceed imports, a country is said to have a balance of trade surplus or to have a favorable balance of trade. When the imports of merchandise exceed exports, a country is said to have a balance of trade deficit or to have an unfavorable balance of trade.